Wool Production Barely Keeps Pace With Human Wants

Wanganui Chronicle, 3 November 1949, Page 5

Wool Production Barely Keeps Pace With Human Wants

LONDON, Nov. 2 (Recd. 7.10pm). In a survey of the international wool situation, Lord Barnby said it seemed reasonable to expect that with dispersed buying power stimulated in many countries, including Germany and Japan, through American assistance or charity, the export demand for tops would continue to be large. “It is possible," he said, “that combing capacity throughout the world is being expanded more rapidly than wool production increases. The current widespread practice of regulation by quota and licence stimualtes overseas combing development—for instance, in the Argentine, Chile and Egypt, and South Africa and Australia, while in Europe reported installed equipment shows great expansion in Italy. "It should be borne in mind,” Lord Barnby continued, “that during the first six months of 1949 combing activity in America has not exceeded 60 per cent., and yet wool has continued to be used up fast in other parts of the worli

“Wool stocks as reported for the United Kingdom in general are modest and subnormal. This gives ground to expect substantial overseas purchases at origin during the current wool season if, as seems generally to be expected, wool textile machinery continues to be well employed. “World wool stocks, with the progressive reduction of the accumulation in the hands of the Joint Organisation, and with little increase in sheep population ,are comfortably adjusted to consumption. It may well be that production is barely keeping pace with the expansion of the human population or, more precisely, with the expansion of developed wants. It is probably too early yet to measure the approximate long-run relationship of demand against supply under the newly-adjusted exchange and price levels. It seems probable buying power will continue to reside in the Iron Curtain countries. Demand from the habitual main wool importing countries of Europe seems likely to continue normal. “For Britain it is manifest there will have to be 44 per cent, more volume in exports to hard currency countries on the same price parity to obtain the same sterling revenue as before. In any case substantial internal redeployment in Britain would be a prerequisite to provide the hands for such an increased volume. “In cloth it seems doubtful 'if that can be achieved to America from those within the high-income group which United Kingdom merchandise customarily serves there. If it were to be achieved in ‘bread and butter’ lines, which is most unlikely, it would obviously bring political reactions in America, where unemployment in the wool textile industry is reported as I nearly 40 per cent, for the first half of this year.” Apparel distribution within the United Kingdom suggested continuance of high buying power m the home market, which established good prospects for the wool textile Industry in general, Lord Barnaby said, adding that France was Britain’s chief competitor in the export Held, in semi as well as fully-manufactured wool textile goods., The export ot tops by France to Central European countries was on a Mrge scale. Special Correspondent N.Z.P.A.